One of the companies that I am happiest to own is Taiwan Semiconductor Manufacturing Corporation, abbreviated as TSMC. I reviewed the company’s financials recently and would like to talk about it here. The company is listed in Taiwan and the US with tickers 2330 and TSM respectively.
Company Background
TSMC is in the business of semiconductor fabrication. You probably use a TSMC-made product without knowing it – your phone, computer and television set probably contain parts made by TSMC. If you have an iPhone or drive a modern car, chances are you are an end customer of TSMC.
So what exactly does TSMC produce? It buys raw silicon wafers and puts them through special lithography steps in their fabrication facilities (fabs). By the end of these steps, the wafers become tiny electronic chips. These chips are then put into end products by TSMC’s customers.
TSMC is currently using its 5 nanometre process to build chips....